Getting calls from debt collectors is not an exciting event that we look forward to. So when we get these kinds of calls, we should know how much debt collectors usually settle for so that they will start getting off our backs.
When a creditor calls and you know you only missed a payment or two, you don’t have to worry. You can issue a check and update your debts. But what happens when you are delinquent? Or if you suddenly fell into financial ruin? Is getting back on your feet in a year or two not imaginable? At this time, you will also get calls from debt collectors and collection letters.
Sometimes you may think you can get away with your long outstanding debt, but you can’t. Debt collectors exist to get the money your debtors lent you, or at least a percentage, so how much do debt collectors usually settle for?
These people will try to get as much as possible but settle with 50% or sometimes even less. So the general rule is a settlement between 30-50%.
When negotiating with a debt collector, a lump sum settlement is ideal. If you have a considerable amount of money, say 70% of your total debt, you can start offering the debt collector 50% of what you owe as a lump sum settlement. If he says he can’t go down that level, keep haggling until you reach your maximum amount of 70%. But always remember that you should only offer what you can afford to pay.
You can negotiate your debt settlement. But you can also hire a lawyer or a debt settlement company to do all the negotiations. It will take some time, but you’ll be debt-free. While waiting for your debts to be settled, pay your bills on time and manage your finances better this time.
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